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Us 11, Washington 5, New York 4, Cnn 2, Steven Moore 2, Lex 2, Dr. Scholl 2, Karen Tumulty 2, Medicare 2, America 2, Poppy Harlow 2, Bill Rogers 2, Charlotte 2, Florida 2, D.c. 2, Nurburgring 1, Henry Paulson 1, Shiller 1, Ben Bernanke 1, The Economy 1,
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  CNN    Your Money    News/Business.  

    September 4, 2010
    1:00 - 2:00pm EDT  

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recession and we don't have real numbers yet. up 15% from last year. between 35,000 and 55,000 people here this weekend. >> i love the shoes. >> i'm ready for gdragoncon. we'll sneak out. strayed straight ahead, in the 3:00 eastern hour are kids overworked and overstressed? we'll, we are going to catch up with the creators of a document called "race to nowhere" and they talk about what this stress has done to kids preparing for school, trying to get into higher education and at 4:00 eastern time we'll move ahead to the movies. stay with us throughout the day for latest breaking news. right now time for "your $$$$$." >> there are fresh signs of an
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economic recovery, but where are the jobs. welcome to "your $$$$$," i'm ali velshi christine romans is off this week. this week we got the job numbers for august. there is no green. in fact we lost 54,000 jobs in august. but the private sector, private businesses, companies actually added 67,000 jobs, that is the holy grail. we want companies growing. we don't need government growing. companies growing means that the emphasis on economic growth has fallen where it is supposed to. steven moore is a respected sparring partner and a good friend of this show. i described it as a glass one quarter full. i stick with that assessment given today's news. you sth. >> i agree with what you said. the good news is we got private sector job growth.
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and so i was encouraged by that and by the way this report was better than economists were forecasting. most of the job losses were the layoff of census workers. nose we those were part-time workers, we need to generate 125,000 jobs a month to keep the rate where it is because we have natural growth in the labor force. we have to do a lot better. >> and that is just to keep the unemployment rate where it is. it ticked up to 9.6%. but the fact is, if we want to bring that down to where we were before the recession, we have to add more than 125,000 jobs. >> i did some of the numbers. for the next two years, just to get the rate down to 8%, which is still not great shakes.
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>> let me introduce rutgers university professor bill rogers, bill, let me break this down. so we are not constantly talking about numbers, jobs are more than numbers, this is demographic breakdown of the jobs situation. remember, we said the rate is 9.6%. that is the general population. adult men are suffering a greater rate than the population. 9.8% higher. women 8%. lower than the general population. teen-agers this is not a great time to be a teenager looking for a job. 26.3% unemployment. white people in general 8.7% lower than the national average. african-americans almost double
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16.3%. asians 7.2% lower than the national average. bill, we have talked about it before, but viewers may not understand the nuances of that. what does that break down tell you? >> the economy doesn't treat everyone the same. rates vary by race and gender. they vary by your age and this recession has been very, very -- similar to past recessions that those at the lower part of the job ladder, less skill, age, they have brought in the recession but one thing that has been brought out in the data, it is similar, but during this recession before it started, men and women have similar unemployment rates because construction and manufacturing took a greater hit. >> and women in education and
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health care in nose athose area showing growth. >> one area that is important what steven said i agree with him, you have to 125 tho,000 ne jobs per month. because these are the groups we highlighted, they are going to be the slowest ones to move from the side streets of america to the main streets. >> i want to ask you a question, teg is the ceo of deco a grade friend of the show. you have your in fer on the face of employment. you have said to us before, that is a natural part of the process, of -- coming out of a recession. is it still natural or are we spending too long in this world of mortem pry and permanent and
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no benefits jobs being added. >> this is part of the recovery process. so as the recession ends and we see economic growth again, it begins from an employment perspective and that began last summer and we have added 390,000 temporary jobs. it moves into the professional skills that is what we are seeing in the recovery so far. temporary employment is up 20% and that is moving into it skills and finance and accounting skills. legal skills we saw 4,000 job growths. >> and you are saying in the report is that reflected in your business you are seeing the same things. >> sab absolutely. we were talking about last month's report. didn't make sense. i think we have confirmed with
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the august data that was a blip in the data. that the temporary employment is still leading the jobs recovery. 67,000 private sector job s not enough, but if i look at the temporary side and the aftverag workweek we are still moving in the right direction. >> sometimes we have great opportunities for discussions, today isn't the time for that, because today is the time to help our viewers to understand the nuances of the single most important report at a time that could be a turn iing point. so i want to break down the last few months job losses and creation between government and the private sector. let's go to the wall i want you to explain to our viewers the distinction. january there were few jobs created in the first place. in february, we saw government jobs being lost private sector jobs being gained.
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you want more jobs and fewer government jobs. march, february, april and may, you see the jump in government jobs and a drop in private sector jobs. june, loss in the public sector, gain in the private sector. same pattern here. give our viewers a sense of what this is important. >> first of all, it is not a complicate td he kwags equation here. the bump up were the census workers, the people knocking on doors and asking people to fill out their forms. we all new and said this back in june that those jobs would disappear later in the summer and that is why you see the big decline that will last a month or two. the other thing going on with
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government employment the federal government is still hiring people, but at the state and local level they have balanced budget requirements they have had to layoff workers. >> stay right there. bill rogers always a pleasure to see you ted thank you. steven i want you to stake around. millions of americas continue to be out of work. you want to know what washington plan to do about it, we are going to do that for you. president obama's labor secretary is with us coming up next. 3q for the worst allergies i want a product
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these are the final weeks. hurry, now's the time and this event won't last. call... before this limited-time offer ends. all right we want to talk to you about what is happening in the workforce and what washington has planned for it. >> thank you for being with us. good to see you again. listen you have a great job, i ha have mused though if there were a veyee ia reality show, you mu the worst job in america tell us about what we have been seeing. >> we have been able to add
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private sector jobs. we were losing over 740,000 jobs. in the last eight months we've seen 90,000 private sector jobs added. this report changes a bit. b but i would say that it is steady. i would say the path that we are on is very good. 19,000 more jobs added this time but also in health care that continues to grow. i see in different parts of the private sector there is increase occurring but not as fast and strong as we would like to see it. so more lending can be made available through community banks to small business owners. i want to go back in time. i want to take a different route to when you were a member of congress and one who is particularly close to labor and
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working people. how what do you say to them. 40% of the labor force has been out of work for six months or longer. what you are saying about tax cuts and goosing small business and allowing them to get the loans is important. there is an urgency growing out there that is leading to a dissatisfaction about the end of his economy. i'm looking to speak to congresswoman solice for a moment and say what do you tell working people out there. they continue to be out of work. >> you know i recall when i was a house member before the recession was really tagged as a recession as the area that i represented in southern california, we had unemployment rates as high as 9%. for people in those communities they have been suffering before the recession was called. i would hope that previous administration would have moved
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quicker so we wouldn't have had to come out of that ditch. it is slower because this is a very hard recession. the tools and the fact that we were able to get recovery dollars for unemployed people, but also looking at investments in green technology and training programs. we have given over $750 million, renewable energy training. >> let me ask you this, renewable energy is under constant attack. there is a group of people who say extension of the unemployment benefits say it keeps them at home and not get a job. the fact is you are overseeing a program that is under attack in congress. >> let me tell you, for everyone
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dollar that the federal government gives through the ui program 1.60 is generated in the community. businesses are getting benefit because people are purchasing goods and services. keeps power on and gas in the tank. what i hear is that people need that as a lifeline and have earned it and we should be able to provide that support until we get out of the woods. >> you talk about people retraining for jobs. how do we deal with people retraining? do they have to watch showing like ours and find out what industries are hot? >> they can go online to dol.gov and i would direct people to dol
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got go .gov. and i want to wish everyone a happy labor day. >> steven moore is with us and karen tumulty and lex harris. steven, i meant it when i said it. i do not envy her position because how much can the government actually do to fix this bhem that we are in right now? you yourself said that the private sector needs to be creating jobs, what role does the government have in helping? >> well look i worked for the reagan administration and we had a pretty material recession in 1980, 1981 and 1982. we cut tax rates for businesses. >> your tax rates were higher then. >> they were. the point i'm making is that we had a really strong recovery. at this stage we had 8% growth which is five times higher than
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what we have now. maybe we ought to try that approach since the stimulus approach of spending hasn't worked very well. >> karen, your view of this we have had mixed messages in this economy for the last several weeks, a growing chorus, we have evidence in the last week, it is not a strong and robust recovery. >> as a political reporter, i'm putting this against my frame of reference which is labor day begins the final stretch to the midterm elections. where the democrats had hoped this would turn out to be a recovery summer people aren't feeling it. it appears to be set. it is looking like it is going to be a very bad environment for democrats and their argument going forward is going to be okay, you know you didn't think
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this has worked that well, well to elect the republicans would be a turn back words. so this is the battleground, the frame of reference we will be seeing. the president is going to kick this off and monday at a labor day rally in milwaukee. >> lex, what is your view? what do you think? >> i'm so struck by how uncertain everybody is. when you seek to economists, no one knows what they should be doing. when you talk to steven, he has a clear sense of what has to happen here. >> that is why we love having him on. >> you hear economists cut taxes and keep them for the rich or not. behind it all is the concept of long-term debts and when do we tackle that problem? >> stay with us all of you, next a few positive signs, is that going to help? is that going to help democrats get elected in november or does
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the house go to the republicans stay with us.
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. >> the biggest indicator out is the jobs one. we lost 54,000 jobs in august. how is that a positive sign? that $54,000 -- 54,000 jobs is a loss of 121,000 government jobs and a gain of 67,000 jobs in the private sector and that is where we want it to be. also personal spending and income, they edged up in july. that is the first month they have those numbers for. let's talk about this for a second, you know the white house isn't doing this job, they are not selling this as well as they could. they would rather not be talking about the economy.
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they have called it the summer of recovery. that didn't happen, having talked about how the unemployment rate would be lower than it is today i think they would rather the economy recovered and they don't have to talk about it before these midterms that is not the reality. they are not on the ballot. there are a lot of disappointed democrats on the hill. they had hoped that this would be an august where they were talking about the copy. but instead, in part the white house's fault for unforced errors and part our media. but we were talking about things like a mosque controversy in new york and a lot of things that again, did not i pthink get to the basic gutt concerns of this moment of most american voters. >> i want to vereflect on something for a moment. back in the end of 2007 the beginning of 2008, president
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bush and henry paulson and ben bernanke every few days would come out and make a pronouncement about the economy. it didn't make much sense markets didn't like it and it muddled the message. we saw president bahamas come out on monday. last monday, and talk about the economy a little bit. i couldn't quite decide what point he was trying to make and the address to the nation about the end of combat in iraq. he talked about the economy again it did not seem clear. as we head into the midterms, what are the republicans doing in the absence of that message? >> the two big eflt, and those two things are problems for the press. i'll say this, this may surprise
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you, i think you are right that there are positive signs and those concerns if you had asked me three weeks ago, i would have been nervous about it. but i think we will skate through this without a dip. what has made you think that it may not be as bad as it felt? >> the stock market made a nice recovery. we are seeing business spending again. i think that is a big deal. you can't have the jobs until they are purchasing new capitol and technology. and the consumers feeling they can dip their toe in the water and go into the stores again. >> businesses have money piled up. we have even mergers and acquisitions and consumers have
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a savings rate closing in on 6%. >> that is a good thing. >> these are two good things, lex, what is happening? who is going to pull the trigger? >> well, it is a lot of money. we will talking about $2 trillion think the business side. consumer balance sheets are back on track but they are scared and it is the thing we were talking about before which is if you know there is a lot of uncertainty about what is to come and what the government is going to do. and is my job going to be there in a year? >> and home prices as well. so it doesn't put people in a good situation to spend money right now. back in july the approval rating in on the economy for the
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president was different. it is now 59%, karen has this to do with the administration and how they are dealing with the economy? >> i think it is more with how the economy feels. the administration every day will put out an expert that will explain to you how they keep the recession from being as deep as it might otherwise have been. >> which is a hard thing to mess jury. >> itmeasure. >> the thing that i have been watching that is telling, if you ask people whether they are someone in their family has lost a job within the last year, the number is getting pretty close to 4 in 10 americans saying yes and that is such a prtraumatic thing for a family to go through. it colors all of your perceptions of everything else. >> high interest rates didn't
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stop people from spending but seeing someone lose a job has done it. thank you to all of you. karen tumulty from, "the washington post" thank you to all of you. are home prices starting to stabilize? what does it mean to the value of your house or the one you want to buy up next. [trumpet playing "reveille" throughout]
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reviving the economy means reinventing the way we do business. here's to the owners showing us the way. [trumpet playing "reveille" fades to silence]
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a punch in the nose to you negative nellies. national home prices actually rose 3.6%. but, let me put that gain into context for you. it is not across the board. there are other pafactors at pl. susan walkter is with the university of pennsylvania, when you look at case shiller or something else, the fact is that the price of a single family
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home nationwide is up year over year but we have seen signs that there is trouble in the housing market. >> the data does know that prices are up. but the increase is decelerating and i think it is fair to say we are in a band of uncertainty. prices are in a lull at this point. they may not actually fall, but we see signs of slowing of the price rice. we are not likely to see a price rise in the next few months. >> some need to look at it for investments or the market. when you think about housing you think about the house you live in, that you might be trying to sell or buy. across the country, according to the study that i cited, there are hot markets out there. c san francisco continues to be hot. these are three cities with
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double digit gains in home prices. and then you look at the cold housing markets. las vegas continues to be down. charlotte a banking center continuing to get hit. seattle is down 1.8%. what stands out to you. when you look at the housing market across the country and then the disfrences in markets? >> job growth and you hit on a that in charlotte. also the key factors inventory. what is the over hang of houses in the market? for example, florida is suffering from that. california actually doesn't have much of an over hang that is why it is recovering faster. >> i've got foreclosures on one side keeping the price of homes down because of the over hang and i have low interest rates, which one is going to win out? >> on the long run the interest
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rates will win out. in the short run it may be the over hang, does it looks like a time to buy a house to you? >> if you are in the market for the long run you are not timing the month to month. >> these 4.25% interest rates for a 30 year loan, on a conforming loan that isn't -- it is below $417,000 that is amazing. is this something we'll see for a long time? >> absolutely not. but we are going to see it, i believe -- no one can forecast interest rates let's put that aside.
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as long as the economy is in a lull interest rates will be low. we don't see that job rate coming to take us out so fast maybe a year from now. there is time to take advantage of the low mortgage rates. >> and then you pointed out something i was going to say, the reality is these two things cannot be looked at independently if jobs continue to be lost it will affect the housing market. professor what a pleasure to see you again. listen the safety net for teaching jobs is under attack. the fight over eliminating tenure in public schools and why some say it will lead to better teachers. [ birds chirping ] [ engine revving ] [ male announcer ] what can you do with seven minutes... fifty-nine seconds and thirty-two one hundredths? [ engine revving ] maybe walk your dog around the block.
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if the question is how does an economy prosper, the answer is through strong education. education reform efforts are testing some perks of the tea teaching profession particularly called safety net called tenure. in one of the most competitive job markets in decades tenure could get swept up ip a wave of reform. >> i'm surprised that i got the job. >> it is smiles at new teacher orientation in new york. school starts on tuesday so does the clock on a three year probationary period they hopeens in teenure the safety net that
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protects teachers from unfair dismissal. >> it is overwhelming, managing a classroom, making lesson plans, meeting deadlines, this is new to a first-year teacher and on top of it trying to pass each year to get to tenure it is a lot. >> just about every state has a t tenure law on the books. it is job security in a tight labor market, but critics say it prevents districts from removing bad teachers from the classroom. >> these were not intended to guarantee life time employment for teachers. over time it gem expensive to fire a teacher and today districts don't attempt to do so on grounds of performance. >> teachers can be dismissed after receiving multiple poor
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evaluations in 11 states. in other states like new york, they can be fired but usually put on an improvement plan. >> the obama administration is pressing states to rethink the process. >> at the end of the day, what teachers want more than anything else is to make a difference in the lives of kids and we need the tools and conditions to do so. part of that is a teacher development and evaluation system that will help us improve teaching. >> for right now, teachers are more nervous about meeting students and administration expectations at the end of the year. >> it is a bier's market. i'm proud of what i see, i'm excited about what they are going to bring to the classroom. >> just about every state has some form of tenure protection.
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some states refer to it as a continuing or term contract. for the 2009-2010 school year the one that has passed us, the ones in yellow here were eligible for teenure after three years. eight states wait a full four years or longer, the states in red dolled out the job protection after two years of less in the classroom. critics think that is not enough time. the federal government's right to the top program as sparked reform. in florida, a measure to do away with tenure all together passed the state legislature, it was vetoed by the governor. in colorado student performance will determine who is tenured and in washington, d.c. chancellor michelle reid has adopted a system in which a teacher can be fired after a
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single poor rating. up next, i'm going to tell you how to avoid making a common mistake.
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okay an important message for job hunters, do not use a real job interview to explore possible careers. our next guest says it happens all the time and can cost you the job you desperately need. it is obvious by the way, no unless you are interview wg a nose ring installer. ellen, let's talk about good to see you. >> good to see you. >> this is a detailed conversation we are going to have. you say there are three kinds of interview. >> exploratory, informational and concrete job interview. >> so the last one is the interview, but the fact is, you
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have to think about these in three different baskets. let's talk about the one we are cautioning people about. >> right people are going into interviews and they are being asked why do you want to be in sales. and you think you are flexible but you can't do you're soul search iing in front of a potential employer. >> somebody comes in and says this is the job for me. what is it? >> if you are not sure what direction you should go in, you should be talking to people, friends, colleagues, people career centers, anyone. >> people who are not going to hire you. >> sometimes you only get one shot at a person with a lead. you have to make the decision what are you saving this person for? >> exploratory is the first step that is not enough to get you to
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the job interview. you are suggesting there is a second process. >> that is right. and people confuse the two and the three. once you have done the exploration and you understand what you might want and can do, then you figure out which industry and what company and you talk to people in that industry to find out as much as you can about those options. >> for instance who? the first one i get friends advisers. am i going to trade shows? >> career fairs, industry events, still use friends and family but you are saying i've identified an industry or company and i want took talk to someone who can help me get to that one. >> facebook, linked in. i want to work for cnn, do you work there? >> this is it. >> so we have the exploratory and the in informational, until you hit those two you say don't
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go for a job interview. >> perception is reality. who am i going to hire? the person who comes in and says i'm thinking about this or someone who convinces me that i want to work only for you, this company, i may cover letter, the whole thing exactly exactly to that position. >> so you make it to that point and then have you the job interview. some viewers are in that position. they know what they want to do, now give me advice for the int are view. >> now here's the thing. right? you cast doubt, you are out. in this economy there is no room for this. so now you'll have done all your homework, have the informational interview and you're going to convince me through your knowledge that i can do the job, i want the job, and i know what it takes to get it done and i can do this for you. >> this is straightforward, this is one of these conversations that seemed obvious at the beginning t i think there are lots of people who are casting about, it's good to cast about -- >> do the exploration at the right time, the right place with the right people. don't do it in a real job
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international are view. >> excellent book, author of "can i wear my nose ring to the interview." why you may make some of the mistakes as your favorite football or baseball star when it comes to money. but first, poppy harlow takes a look inside a mobile cupcake business fueled by social media. >> all right, who's next? who's next? hey there. >> reporter: curbside cub capes hasn't been around long, but washington, d.c.'s, pink cupcake truck has gotten quite a following, and social media savvy is driving the success of this small business. >> so now i'm tweeting and facebooking where my next stop is going to be and i'm telling them how long it's going to take me to get there. they should be ready for us when we get there. >> fingers crossed. >> fingers always crossed. i still get nervous every time i go to a new stop. >> we were passing by and we saw
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these guys, but we've been tracking them on facebook. >> this is actually the third time i think it is that i've been out here and now i'm just addicted. now i'm like wanting them every day. >> standing in line to get another one for somebody else. >> reporter: an online cupcake calendar along with tweets keeps the mobile in touch with customers. >> we say, hey, we're almost there, we'll be there in 15 minutes and we just say the general area. and then when we land, we tweet out again. >> reporter: and customer feedback is a must. >> for example, today we have a flavor on the menu that was the idea of a customer. someone said why don't you make raspberry with lemon. we said, why not? thanks for the idea. so today we have raspberry lemonade on the menu. >> reporter: with 13,000 facebook fans and 6,000 twitter followers, fans are usually just around the corner. >> the nature of the way we move makes the information immediate and relevant to people. so it's one thing to say, there's a cupcake truck around
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somewhere and it's another thing to say there's a cupcake truck outside my building exactly right now. so we're heading off to the square which is -- oh, hello! >> hi. >> you guys almost -- >> oh, wow. >> you just caught us. >> reporter: poppy harlow, cnn, new york.
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football season starts next weekend, but for all professional athletes it's not just about learning the playbook, it's about learning how to invest your money. the money they will make over their usually fairly short careers. for many of them it starts with the basics. >> keep your spending under control, you won't go broke. >> reporter: what if your entire career was five years or less? over by age 30, and every dollar you earned had to last you for the rest of your life? >> don't live like you're making $3 million, $4 million a year, live like you're making $150,000 a year. >> reporter: that doesn't guarantee a secure financial future, as financial adviser ed butowsk. >> puts taughter here. >> a summary of how and why athletes find themselves in financial distress. >> reporter: he runs financial boot camps teaching the basics of money management to current
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and former athletes who may be good at xs and os but not so good at dollar signs. >> most athletes are visual learners. you show it to me, okay, coach, i can do that. so if you break it down into layman's terms where we could really understand it, hey, this is this, this is this, if you do it like this, you'll have this at the end, okay. >> reporter: ed compares a well-balanced portfolio to a well balanced meal. >> we all have an entree with our meal. you should have 50% to 65% of your money in public securities. >> reporter: ed's ideal meal? 10% to 20% of what he calls veggie investments like hedge funds, precious metals and collectibles. fruit, which equals real estate, 7% to 12%, and who doesn't like dessert? >> it's okay to have some of the dessert. it's okay to have private equity. >> cliff floyd and ron dell white played a combined 32 years in the majors. they got paid to keep their eyes on the ball. they left keeping an eye on their money to the professionals.
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>> you're getting ready for the season, you have kids, you have so many distractions away from your finances. >> you're thinking about i need to get two hits tomorrow, or i struck out three times yesterday, so you're really concentrating on the game. >> sound fundamentals regardless of your paycheck. >> if you're an athlete, homemaker, factory worker, ceo of a company, everyone makes basically the same mistakes with their money. >> we've talked a lot on this show about investment mistakes, buying a house, we've talked about the unemployment situation, even what you do to get a job, how you interview for a job, how you research it, all of this is available on cnnmoney.com and to great detail. there are calculators to help you understand whether now is the time to buy a house for you. go to cnnmoney.com. do some noodling around there. there's an investor 101 on there, it will be helpful to navigate thr t

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